Source, the UK-based exchange-traded funds provider, has hired a former executive from BlackRock’s iShares business to become its head of European capital markets, as it seeks to expand following a capital injection from a private equity firm.

Michael John Lytle, chief development officer at Source

Jürgen Blumberg has joined the firm in “a new position taking advantage of the funds made available through the arrival of Warburg Pincus as a shareholder", according to Source chief development officer Michael John Lytle.

He said Blumberg’s principal role will involve dealing with ETF market makers, as well as clients wanting to buy or sell positions.

Blumberg was previously a BlackRock vice president for four years, according to his LinkenIn profile. He was in charge of iShares' client business in Germany, German-speaking Switzerland, eastern Europe and Austria. He joined BlackRock in 2010 from Baader Bank, where he was involved in institutional sales. A BlackRock spokeswoman did not return calls in time for publication.

In a statement, Blumberg said: “Having multiple brokers each making a market for a particular fund should ensure the spread between buying and selling prices remains fair and competitive. My job is to ensure this process works smoothly, that our products trade efficiently and are transparent.”

Earlier this year, Source announced that private equity firm Warburg Pincus had bought a majority stake in the firm. Lee Kranefuss, who oversaw the expansion of iShares between 2000 and 2010, became Source executive chairman following completion of the deal.

Since its launch in 2009, Source has built up assets worth more than $18 billion. It is expected to confirm its US debut in the near future.